The Military Surface Deployment and Distribution Command (SDDC), in conjunction with the military services, provided additional industry guidance on May 6 for the upcoming peak season. We are pleased that the changes they are making implement several of the suggestions from AMSA identifying changes that would help increase industry capacity this summer and minimize service failures.

The changes SDDC has agreed to are temporary, but we believe that if industry steps up and fully utilizes these changes to provide good service, we will have a strong case to implement these changes more broadly.  However, if there are significant service failures this summer despite these changes, SDDC may be less likely to make future accommodations.  Movers should make every effort to ensure that customers are kept informed, and it is important to show up when customers are scheduled for pick up.

We know that, even with these changes, there will not be enough capacity this summer for all customers to move on their preferred dates, so careful use of the shipment blackout capability will be essential.  Here are some of the key parts of the SDDC message, along with AMSA's analysis:

1. For shipments with a pick up date between May 15 and July 31, 2011, SDDC will allow a limit of three (3) shipment refusals per base (GBLOC).  Shipment refusals must be identified and returned within 24 hours (one business day) of shipment award.  Any shipment refused after 24 hours is considered a turnback.  The goal of this change is to allow transportation service providers (TSPs) time to assess shipment capability, reduce the use of DPS (the military's computer system) blackout capability, and ultimately provide better service to our customers.

Analysis: The focus here is on identifying early when there is a problem.  Don't wait until the last minute to notice that you will have a problem servicing a shipment.  SDDC was very frustrated last summer when they saw companies circulating lists of "giveaways" because that indicated the TSP couldn't handle the shipment and didn't really care who took it off their hands.

SDDC is also hoping that movers will relax their blackout dates because of this change to free up some more capacity in areas where they may have some limited (but not universal) capability.  While this makes sense, and movers should make as much capacity available to the military as possible, it remains important to ensure you have blackouts in place when you know that you will have trouble servicing a shipment.  The downside of taking a shipment you can't handle is a very upset customer when the truck doesn't show up.  As we saw last summer, shipment offers can come in waves faster than you can react.  It is safer to have some blackouts in place to minimize your exposure and focus your shipments in the areas where you do have capacity.

2. Temporary elimination of the 70% rule (May 15 - July 31, 2011 only) for storage in-transit (SIT).  Personal Property Shipping Offices (PPSOs) must provide shipment delivery instructions or authorize SIT within the required two-hours' free waiting time (time starts when the TSP indicates in DPS that the shipment has arrived at destination).  This does not eliminate the TSP's responsibilities to stay in contact with service members who have a direct delivery address and to honor the negotiated dates for delivery.  Punitive action and/or low customer satisfaction survey (CSS) scores are still likely for TSPs who exceed the shipment's required delivery date (RDD) or do not meet agreed upon dates for direct delivery.

Analysis: This change is a major improvement in an area which has been very upsetting to many drivers and agents.  Having the ability to offload shipments quickly will significantly help turn around trucks to pick up other customers.  The key is to remember that customer service remains critically important to receiving a good score from the customer survey, so drivers and movers who fail to communicate with the customer will pay a price here if they try to take advantage of this rule change.  Movers should make reasonable attempts to let the customer know of expected arrival at least 24 hours ahead of time, rather than waiting for the two hour window to start tracking them down.

Another problem we hear from SDDC is some agents are taking too long to deliver shipments out of SIT upon customer request.  The rules allow five days, but the customer expectation is quicker service than that.  Companies that find a way to take care of their customers when they are ready for their shipment to be delivered will be rewarded with a good score, and the military will be on the lookout for movers who take too long to make deliveries.  Agents may need to assign additional crews to make deliveries in a timely manner, even if that means fewer crews available for other jobs.  Telling customers it will take two or three weeks to get their shipment out of the warehouse will cause SDDC to re-think this rule for future summers.

3. PPSOs must provide timely disposition instructions or approval of SIT requests within the two hours' free waiting time.  PPSOs must take all necessary actions to ensure preapproval of accessorial services and/or approval of SIT are accomplished as early as possible to ensure industry capacity is not unnecessarily delayed and available to support the shipments of other service members.

Analysis: We have urged the military to speed up approvals for SIT and other accessorials, which they are supporting here.  Movers must conduct timely pre-move surveys to help speed this up.

4. PPSOs are encouraged to authorize origin SIT for shipments that do not have a destination address and when line haul capability is limited or unavailable.  TSPs may also request origin SIT approval from the PPSO, but not later than the first pack date.

Analysis: Origin SIT can be a useful tool when warehouses are full at destination, but the requirement to request it before the pickup day may limit its usefulness in emergencies.  SDDC is also very concerned about shipments being placed into SIT at destination after being released from SIT at origin, so take extra care to avoid that situation.  Prompt deliveries are also important, as customers will not want to wait a long time for their shipment once they are finally ready for it.  If that happens, SDDC may refuse to support origin SIT in future summers.

5. It is imperative that origin counselors do not put any words or characters in block 18 (street address in DPS) except when a valid direct delivery address is provided by the member.

Analysis: This has been an ongoing complaint that counselors are circumventing the automatic SIT approval process in DPS by entering phony data like "SIT" for the delivery address.  We hope this message helps reduce that activity.

6. While code D is the preferred method of moving domestic household goods, Code 2 is an option to utilize during peak season.

Analysis: Containerized shipments (including commercial containers) may be used to increase capacity in areas where linehaul drivers are not available.  We understand Code 2 booking should become available in DPS soon.